Why Abia's Recovery of Star Paper Mill and Afro Beverages Could Spark a New Industrial Revolution | SEE PHOTOS

Abia State has taken a decisive leap toward full-scale industrial rebirth following the successful recovery of the iconic Star Paper Mills, Aba and Owerrinta, from the Asset Management Corporation of Nigeria (AMCON), alongside advanced efforts to complete the acquisition of Afro Beverages Limited, Owerrinta.

The development marks one of the most strategic industrial interventions by the administration of Governor Alex Otti, reinforcing his commitment to reviving moribund industries and repositioning Abia as a manufacturing and employment hub in the South-East.

The historic handover ceremony, held at the Banquet Hall of Government House, Umuahia, symbolized more than asset recovery, it represented the restoration of Abia's industrial soul.

Speaking at the event, Governor Otti described the recovery of Star Paper Mills as a fulfillment of his campaign promise to resurrect abandoned industrial assets, including Aba Textile Mill, Ogwe Golden Chicken, Aba Glass Industry, the Aba Industrial and Metallurgical Complex, among others.

Star Paper Mills, founded in the 1970s by renowned Abia-born industrialist Chief Nnanna Kalu, once stood as a leading integrated paper-conversion and manufacturing enterprise serving domestic markets across Nigeria. Its collapse not only erased thousands of jobs but weakened the industrial value chain in Aba and beyond.

Governor Otti disclosed that before its shutdown, the mill employed over 1,000 workers directly and more than 5,000 indirectly, stressing that its revival would generate between 3,000 and 5,000 new jobs, stimulate local businesses, and attract private-sector capital.

"Jobs, jobs, and more jobs - that is the ultimate goal," the governor emphasized, noting that the state government's strategy is not to operate industries but to de-risk investments and hand them over to capable private-sector operators.

He revealed that the mill had previously been sold under questionable circumstances, with breaches in the agreement, but was successfully recovered through negotiations with AMCON, including the refund of payments made by the former buyer.

On Afro Beverages Limited, Governor Otti confirmed that acquisition payments were ongoing and would be concluded in the coming weeks, revealing that interested investors are already on ground to partner with the state in reviving the facility.

The Commissioner for Industries and SMEs, Mazi Mike Akpara, described the moment as "the return of life to Abia's industrial sector," announcing that the state had completed the acquisition of Star Paper Mills with a 2.5 billion payment, while an initial 500 million deposit had been made for Afro Beverages.

He added that a structured 500 million bimonthly repayment plan is in place to clear the remaining 3 billion balance for Afro Beverages within the 2026 fiscal year, while engagements are ongoing to revive other dormant assets such as KAN Biscuits, International Equitable Industries, and the completion of Enyimba Hotel as a five-star facility.

AMCON's Executive Director (Assets Management), Dr. Aminu Mukhtar, praised the Abia State Government for its commitment, describing Star Paper Mills as an industrial icon deeply woven into the state's history.

"AMCON does not take over assets to destroy them but to preserve value," he said, expressing confidence that the revival would strengthen local supply chains, boost household incomes, improve Abia's GDP, and stimulate ancillary businesses.

Industry analysts say the combined recovery of Star Paper Mills and Afro Beverages could reposition Aba as a production hub, reduce import dependence, deepen manufacturing value chains, and restore investor confidence in Abia's economy.

[caption id="attachment_197667" align="alignnone" width="2048"] Why Abia's Recovery of Star Paper Mill and Afro Beverages Could Spark a New Industrial Revolution[/caption]